The Federal Mortgage Bank of Nigeria (FMBN) says it has delivered 28 projects in the six geopolitical zones that yielded 3000 housing units. Given an average of five persons per family, it means the bank has provided homes for 15,000 persons.
Lukman Mustapha, executive director, Loans and Mortgage Service, at the apex mortgage bank, who disclosed this recently, added that the bank had approved N14 billion National Housing Fund (NHF) loan for over 2,000 contributors to the fund.
Mustapha spoke at the commissioning of a 100-unit scheme at the FMBN- NLC/TUC/NECA Housing Estate in Dutse, Jigawa State under the National Affordable Housing Delivery Programme for Nigerian Workers.
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The mortgage system in Nigeria is structured in such a way that there is no single-digit interest rate on a mortgage which is why housing sector operators say a mortgage is either minimal or non-existent in the country. Mortgage loan comes with a spread of 20-27 percent interest rate and for a short term.
Mustapha noted that FMBN remained the only institution offering a 10 percent interest rate to Nigerians for individual loans, construction loans, home renovation loans and rent-to-own products.
“FMBN offers cooperative housing development and home construction loans to estate developers at 10 percent,” he said, recalling that talks on the commissioned project began in 2013 as part of the bank’s corporate strategy of building productive synergies with critical stakeholders to boost the provision of affordable housing in the country.
